Private prison

A private prison or for-profit prison is a place in which individuals are physically confined or incarcerated by a third party that is contracted by a government agency. Private prison companies typically enter into contractual agreements with governments that commit prisoners and then pay a per diem or monthly rate, either for each prisoner in the facility, or for each place available, whether occupied or not. Such contracts may be for the operation only of a facility, or for design, construction and operation.

In the modern era, the United Kingdom was the first European country to use for-profit prisons. Wolds Prison opened as the first privately managed prison in the UK in 1992. In the UK, all prisons are legally required to turn a profit.

In addition, a number of the UK's Immigration Removal Centres are privately operated, including the Harmondsworth Immigration Removal Centre, Yarl's Wood Immigration Removal Centre, and Colnbrook Immigration Removal Centre.

In the UK there are 2 ways in which a private company may take on management of a prison:

Prisons may be re-competed at the end of the contract. The public sector Prison Service is only allowed to be used as a trading brand for all British prisons Increasingly, a range of services within all prisons, whether public or privately run, are contracted out on a regional basis: this includes works and FM services, and rehabilitation programmes.

Following release of an extremely critical report regarding a G4S-operated jail, the Labour party's shadow justice secretary said they would be inclined to take control of for-profit prisons if the industry competitors had not met deadlines imposed upon them. Sadiq Khan's response stressed the need for better contracting, to include liquidated damages provisions. The chief inspector of prisons Nick Hardwick, recommended the crafting of a takeover contingency plan. "It's not delivering what the public should expect of the millions being paid to G4S to run it." Khan said, " I see no difference whether the underperformance is in the public, private or voluntary sector... We shouldn't tolerate mediocrity in the running of our prisons." Khan continued: "We can't go on with scandal after scandal, where the public's money is being squandered and the quality of what's delivered isn't up to scratch. The government is too reliant on a cosy group of big companies. The public are rightly getting fed up to the back teeth of big companies making huge profits out of the taxpayer, which smacks to them of rewards for failure."

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Wikipedia